The use of federal P.L. 99-457, part H funds as well as state funds shall be allocated by the director through collaborative regional programs to implement the statewide system required under such law, in the following priority:
(1) For early intervention services to infants and toddlers with disabilities that are not otherwise provided from other public or private funds;
(2) To expand and improve on the services for infant [infants] and toddlers with disabilities that are otherwise available; and
(3) For screening and tracking of infants and toddlers at risk of developmental delay.